Exploration opportunities within the Mozambique Rovuma Basin Arsenio Mabote - Chairman INP

Introduction to Mozambique Location: South-eastern Africa Land area: approximately 800,000 Km2 Coastline: Approximately 2,700 Km Onshore sedimentary area: 290,122 Km2 Offshore sedimentary area: 282,227 Km2 Population: 19.420.036 (2005 - INE) Climate: Sub-tropical to tropical Capital: Maputo Over 60 Rivers & Lakes Official Language: Portuguese Natural Resources: Hydropower, natural gas, coal, minerals, raw wood, agriculture Export: prawn, cashew, sugar, tea, coconut oil, cotton Currency: Metical (MZM) PIB per capita: US$ 236.9 (1998) PIB growth: 9% (1999) MOZAMBIQUE MAPUTO INP_ Instituto Nacional de Petróleos

Mozambique 2nd License Round – Rovuma Basin The Rovuma Basin is about 400 km long and 160 km wide (250 by 100 miles). The Rovuma Basin extends from the port of Nacala in to Southern Tanzania. The basin is located both onshore and offshore and within Mozambique covers over 30,000 sq.km (12,000 sq. miles). For the purposes of the bidding round the Rovuma basin has been divided into seven areas, one area onshore and six areas offshore

Mozambique 2nd License Round – Rovuma Basin Over 30,000 sq km Under explored Water depths from 0 to >2,500m Deep water never licensed

Rovuma Basin Well Data Old Offshore Seismic Data Onshore Seismic Data Modern Offshore Seismic Data Gravity / Aero-magnetic Data Satellite Data

Rovuma Technical Data All Technical Data available for the bidding round: Data Rooms Landmark Project SMT Kingdom Project Data Package to include: Information CD (Petroleum Law & Prospectivity Posters) Country Overview Report Digital Well Data Digital Seismic Data Field Work / Field Visits

Rovuma Basin Exploration History <1980 - Some fieldwork in 1960’s 1980 - CGG aero-magnetic survey 1981 - Geco offshore 2D spec. seismic survey 1983 - Esso/Shell, JV Rovuma Basin 1985 - Esso/Shell, onshore seismic, grav, mag 1986 - Esso/Shell, Mocimboa 1 well 1986 - Esso/Shell, relinquish licence 1989 - ENH, shallow water seismic survey 1996 - Lonropet, Rovuma PSA (1st offshore licence) 1996 - Lonropet, Aero-magnetic survey 1996 - Lonropet, Geological field work Continued...

Rovuma Basin Exploration History 1998 - Lonropet, Onshore relinquished 1998 - Lonropet, Offshore 2D seismic survey 1998 - Lonropet, Energy Africa farmin 30% interest 1999 - Lonropet, Geological field work 2000 - Lonropet, Geological field work 2000 - Lonropet, Interpretation and Analysis 2001 - Lonropet, PSA Relinquished 2005 - Mozambique 2nd Licensing Round

Well Ties Mocimboa 1 - Esso / Shell 11/18/2018 7:33 PM Mocimboa-1: the only well drilled in the Mozambican part of the basin, drilled onshore by Esso to a TD of 3,493m in 1986 with strong gas shows, and possibly condensate in Albian sands (fan complex).

Well Ties Mnazi Bay 1- Agip 11/18/2018 7:33 PM DST 4 Flowed Gas at 393,800 m3/day Mnazi Bay-1: drilled in the Tanzanian side of the Rovuma basin just north of the Mozambican border by Agip in 1982. Tested gas rates up to 14 mmcf/d from Oligocene sands of the Rovuma Delta Complex, with porosities of 16 to 24% and excellent permeabilities. Lukuledi-1: drilled in Tanzania by Texaco in 1990 in the northwestern part of the Rovuma Basin. Encountered good quality porous and permeable Permo-Triassic Karoo clastic sediments (average porosity 22% and permeability of several darcies). Confirmed the presence of Middle-Upper Jurassic reservoir quality marine shoreline sandstones of the Mtumbei Formation, with porosities exceeding 20% and good permeabilities.

Onshore Seismic Data

Reprocessed – Onshore Seismic Data

Lonropet Seismic Program Acquired in 1998 3,600 Km 2D Seismic Data Data shot and processed for Lonropet by Western Geophysical

Field Work Program Review of previous work Seismic to surface geology ties Seek possible source rocks Seek possible reservoir rocks Seek hydrocarbon seeps

Review of previous work - Flores circa 1960 Field Work, 1960 Old Field Maps Old Reports Help to locate samples Seep on Montipuez River ? 2000 - Florence 1960 - Mtwara Tar Sands

Seismic to Surface Geology Ties

Rovuma - Outcrops

Field Work Summary Sampled potential source rocks within the Cretaceous. Sampled good quality reservoir rocks with high porosity Sampled several oil seeps Sampled gas seeps Discovered Jurassic sediments within the Rovuma

Structural Elements Northern Area Southern Area Rovuma Delta Ibo High Palma Embayment

Interpretation Overview Tertiary Delta Cabo Delgado Ibo High Pemba Ibo North Ibo Central Ibo South

Play Types: Ibo High Area

Ibo North Prospect GRV of 133 billion m3 assuming a thickness of 400m of Karroo sediments Net to Gross of 20% Porosity of 18% Water saturation of 30% Water depths of 500 - 700m Depth to crest, 2300m Four way dip closure (418km2) with 1100m of vertical relief Triassic to early Jurassic fluvio-deltaic channel and sheet sands

Interpretation Overview Tertiary Delta Cabo Delgado Ibo High Pemba Ibo North Ibo Central Ibo South

Play Types: Tertiary Delta Area

Play Types: Tertiary Delta Area

Play Types: Tertiary Delta Area

Play Types: Tertiary Delta Area

Play Fairways Rovuma Delta Ibo High Tertiary deltaic sands Reservoirs and seals Tertiary deltaic sands Seals Tertiary marine shales Source Jurassic and Cretaceous shale Ibo High Reservoirs Karroo, Jurassic & Cretaceous Seals Karroo intraformation shale Transgressive Jurassic and Cretaceous shales Source Karroo shale Middle to Upper Jurassic Palma Embayment and Rovuma Basin shale

Exploration Potential Leads & DHI Map Tertiary Delta Sector Cabo Delgado, sub marine fan sand Sub Thrust Play Backwall Anticline Fore-thrust Compressional Lead Imbriacte Structures Vanizi Lead Ibo High Sector Eastern Flank, Turbidite Fan Sands Aptian Lead Reactivation Features Cretaceous Reefs Southern Sector Half Graben Lead

Technical Summary Initial exploration of the Rovuma Basin has shown it to be a multi-play and multiple prospect area with direct HCI’s Exploration in the Rovuma is high risk but high reward The most outstanding features identified are the “Tertiary Delta” in the north and the “Ibo High” horst trend in the south Source and Reservoir rocks have now been sampled and identified within the Rovuma Basin The Rovuma Basin has the potential to contain a world-class hydrocarbon accumulation

Legal Framework

Framework conditions Core Elements of new regulatory structure: Petroleum Law 3/2001 Petroleum Regulations 2004 New Model Exploration and Production Concession Contract Legend Administrative law Contract law INP_ Instituto Nacional de Petróleos

Framework conditions System approach moving from traditional contract based system to a modernized EPCC system regulating relationship between State and commercial entities: Contract Law Admin Law Risk Service Contract Production Sharing Contract Exploration Production Concession Contract Concession/ Licensing Contract Increased reliance in new EPCC based system on legislation rather than contract clauses INP_ Instituto Nacional de Petróleos

Organisational structure Petroleum law the legal foundation for the governance structure of petroleum activities clarifying roles and interests: INP Regulator Resource owner Commercial Interest

Mozambique offers good exploration opportunities: FINAL REMARKS Mozambique offers good exploration opportunities: Good prospective acreage available Favourable legal, regulatory and fiscal framework Adequate infrastructure for natural gas transmission; Political stability Licensing Round to be announced, 15th of July 2005.

Thank you for your attention